FX.co ★ Elliott wave analysis of DAX Index for January 7, 2021

The German DAX index could be peaking near 13,989. The DAX Index has rallied strongly March 2009 and the wave count suggest a major top could be nearby. A break below minor support at 13,438 will be a good indication that the DAX Index has peaked, while a break below support at 13,009 will confirm the peak and call for a strong decline to at least 9,425 and likely lower to strong support at 8,000.

That said, we also need to stress, that as long as minor support at 13,438 is able to protect the downside as long will the underlying uptrend remain in place and could force the uptrend higher towards 14,620 as the next upside target, but the potential upside should be limited from here.